Cronos Network Halted After $75 Million Lending Protocol Exploit

Cronos has resumed normal operations after validators restored the chain to its state before the Tectonic exploit. The network had been halted on August 30 after an incident at a decentralized lending protocol, Tectonic.

The exploit is believed to have occurred when an attacker manipulated the price of TONIC, Tectonic's governance token. According to Weilin Li, an onchain researcher, the attacker inflated the token's price and used it as collateral to borrow other assets from Tectonic.

The estimated loss due to the exploit is around $75 million, with only about $6 million of the affected assets having been bridged to Ethereum before the network was halted. The validators have erased the transaction history to contain the damage.